Oireachtas Joint and Select Committees

Wednesday, 9 November 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2016: Committee Stage

10:00 am

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Amendment No. 47 which was ruled out of order concerned the supply and cost of delivering new homes. It sought a report on the cost of delivering a new home in Ireland and the options available to reduce the cost without compromising the quality of a home. The Minister may argue that it is not a matter for the Department, but I seek a commitment that the issue will be tackled. If he looks at the report of the all-party housing committee, he will see that it sought to have the Housing Agency carry out an annual audit of private construction costs and compare them to costs in other jurisdictions, with a view to making recommendations to the Government aimed at making private houses more affordable. In making its recommendations the agency would look at the cost of construction, the cost of financing, development levies, the cost of compliance, levels of VAT and other issues that might be deemed relevant in reducing the cost of housing.

In the daft.iequarter three report on rents released yesterday Mr. Ronan Lyons makes the point which he has made consistently that there is no more urgent task facing the Minister with responsibility for housing, his Department and advisers, the Housing Agency and others involved in Rebuilding Ireland than understanding the reasons the cost of building, apartments in particular, is so dramatically out of line with incomes and the cost in other countries. I would like the Minister to respond to this point and put some process in place whereby we could make a detailed analysis of all of the inputs in the cost of delivering new homes in Ireland, whether they be construction costs, levies, VAT and taxation levels generally.

The next issue I want to raise concerns the block of amendments which have been ruled out of order dealing with the cut-off dates that apply to eligibility for the scheme. In the case of self-builds, if any element of the mortgage was drawn down before 19 July, the prospective buyer or the person building the home will not be able to benefit from the scheme. This is very unfair, particularly in view of the change we have just made to ensure completed housing stock in housing estates will be eligible for a tax rebate for the purchaser. With regard to non-self-builds, the Bill states people buying homes in housing estates must have entered into a contract after 19 July.

People who enter into the contract before that date but do not draw down the mortgage until afterwards should be accommodated. We are talking about a small number of transactions.